Wood River times. [volume] (Hailey, Idaho) 1882-1915, 1887-06-02
TAXATION OF COIN AND CREDITS.

THURSDAY. JUNE 2, lss7
TAXATION OF COIN AND CREDITS.
The mortgage tax law OF Idaho is
injurious to business. It prevents the
free circulation of money and keeps
interest highland interest is the worst
OF the canker worms that gnaw at
the yitals of trade. 1t is impossible
to successfully tax credits, or "evi-
dences Of debt" and the useless effort
ought to be abandoned.
The taxation OF mortgages, notes
and other credits is the outgrowth of
. natural desire to make moneyed
men pay taxes on their money; but
its only effect is to increase the bur-
dens Of the borrower, make money
scarce, and clog the channels Of busi-
ness. Since the object desired is not
attained, it would be the sensible
thing to quit the effort, and simply
tax property wherever found, allow
ing business to adjust itself on this
basis. Some hardships would result
at 6rst from the change, but the ben
fits would Immediately follow, and
we should have done with the inter.
minsble troubles now prevalent about
taxation Of evidences of debt.
With the above form Of taxation
in vogue, interest would be lower
than at present, but money would be
freer in the Territory, and men of
push aud pluck would not be hamper
ID III carrying on large enterprises.
It would cause an influx of money,
and increase in tangible property, a
much larger tax-roll, and consequent.
ly q lower rate of taxation for all
kinds of realty. Coin, like note or
n bond, cannot be successfully taxed,
because it is not property, but rep.
resentative of value, and "tesring
the hair over the failure of law to &C.
complish it does not bring a cent into
the treasury"
The New York Independent has a
pertinent article on this subject. 1t
says that the whole system of taxing
evidences Of debt is practically fail.
ure, because wrong in principle, and
adds:
A note, or bond, or a mortgage
is in itself considered simply a piece
of paper, having no value except as
it contains q contract between two
parties, by which the one promises to
make certain payment to the other.
That which is to be paid is iu fact,
either directly or indirectly, some
species of tangible property. The
note, bond or mortgage is simply q
legal claim to such payment, and acts
as the instrument through which the
RICH. may be asserted and enforced
and for this purpose is exoeedingl,
convenient in the business transao.
tions of society. But if there be nc
property behind the instrument with
which to make the payment, then the
instrument is worthless. II there be
such property, then that property is
the legitimate subject Of taxation
and if the instrument be also taxed,
then we have double taxation-one
tax being levied on the instrument
which asserts the obligation of pay.
ment.
The state might just as we'll tax the
verbal contracts of men as to tax
their written contracts. The fact tina.
they are written does not make
them property any more than if they
were merely verbal. The fact, too,
that such taxetion is practically a
failure is an abundant reason why
that whichis wrong in principle should
be abandoned altogether. There is
no use in attempting to do what viii
not be done.
The idea grows more widespread
daily that the best method of obtain.
ing public revenue is the simple one
Of TAXING property wherever found.
Idaho ought to adopt that idea, and
quit the attempt to tax evidences of
debt.